Education Centre

Learning path for self-directed investors who want to know more about financial markets and investing

Secure

 

You favour highly secure investments with very little volatility that provide regular and stable income. Your portfolio is structured in such a way as to give you very moderate capital growth over the long term.

Modify

Cash holdings

  • Bank accounts
  • Redeemable guaranteed investment certificates (GICs)
  • Money market funds
  • Governments savings bonds

Cash holdings include all the investments that can be converted quickly into cash without any loss of capital. Keep in mind that holding too much cash limits the return potential of your portfolio.

Fixed-income securities

  • Non-Redeemable GICs
  • Bond and dividend funds
  • Government, municipal and corporate bonds
  • Dividend funds
  • Strip coupons

With the exception of GICs, the return on these securities is affected by changes in interest rates if they are redeemed before maturity. Spreading out maturities of GICs over time stabilizes your interest income and gives you regular access to cash if you need it.

This simulation provides estimations only and does not involve the responsability of the National Bank or its affiliates in any way.

*Using borrowed money to finance the purchases of securities involves greater risk than purchases using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.

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